Could Covid-19 Worker Shortages Create A $15 Minimum Wage—Even Without A New Law?

Could Covid-19 Worker Shortages Create A $15 Minimum Wage—Even Without A New Law?

Activists appeal for a $15 minimum wage near the Capitol in Washington, Thursday, Feb. 25, 2021. To the dismay of progressives like Sen. Bernie Sanders (I-VT), a $15 minimum wage stands no chance of passing the U. S. Senate. For now, the federal minimum wage remains stuck at $7. 25 an hour, where it's been since July of 2009, even though it's been eclipsed by higher minimums in 29 states and the District of Columbia and lost a chunk of its buying power to inflation. Workers making just $7. 25 an hour effectively earn 18% less than their counterparts did in 2009. At the same time, the combination of Covid-19 dislocations and (Republicans argue) too-rich benefits in the $1. 9 trillion American Rescue Plan President Biden signed in March— a federal unemployment insurance supplement of $300 per week plus those $1, 400 per person stimulus checks—have left some businesses reporting they face a labor shortage. "We are having a bit of challenge staffing our hotels," Marriott's new CEO Tony Capuano told CNBC last week, pointing specifically to leisure markets like Arizona and Florida where demand is already roaring back. Marriott is not alone here—restaurants, other types of leisure businesses and